Given that the cost of funds is exactly the same for owner-occupied and investor lending interest rate premiums for investor loans is simply a cash grab my the majors. Play with LVR's but stop the silly propaganda. I hope current property investors at ANZ simply walk away.

This profiteering from recent changes is across most Banks, particularly by the majors though but if the split between owner and investment debt is roughly 50/50, why don't the Banks do the right thing and increase the investment rate by 1/2 of the difference and reduce the home loan rates by the other 1/2 of the difference = same return to banks but still differentiates the debt (or correspondingly, increase deposit rates to match the investment rate increase)

First phone call I had today was from an investor with three ANZ Loans begging me to get him out of there. $2m in ANZ Business about to walk out the door but I guess that is what they want. The changing investor loan landscape is a boon for brokers who are better placed then ever to help borrowers get a better deal.

Definitely appears like profiteering, ANZ could reduce the LVR as commented earlier and reduce the amount of lending growth to investment loans.

Unless APRA has specifically requested that they need to reduce the amount of finance they have already out for investment loans, hence the higher rate will trigger existing clients to refinance, and reduce the investment loan book.

Strange move by ANZ, to upset existing clients that you have brought in rather then just reduce demand from potential new clients.

The real story is that the majors will do whatever it takes to ensure that the double digit growth continues (despite the economic conditions), and this heat from APRA gives them the perfect excuse to gauge additional margin under the guise of doing their bit to cool the market, when in fact all they are doing is profiteering. Changes to LVR's might work, rate gauging wont make any difference whatsoever.

If the issue is the heat in the investor market in Syd and Melbourne why are regulatory authorities unable to mandate regional LVR requirements as was done in NZ with the Auckland property market.? The approach being adopted here is very blunt and will only damage regional markets and local buyers.